Kasko2go

Kasko2go is a car collision insurance solution based on the use of smartphones. It can lower premiums up to 50%.

How it works:

Kasko2go is a Switzerland based member of Crypto Valley that sells a technology that won Israel and Luxembourg awards in security and fintech. It is based on more than five years of researching the largest dataset of drivers to understand their driving habits.

This technology allows to lower the premiums up to 50%, driving the competition out of the market, while preserving the same percentage of profits in the premiums. The app is already used by 25,000 people and this ICO will allow the company to make the app even faster and more secure, attracting more users.

The basic idea is very simple. Once an accident happens, the driver takes several pictures of the damage and uploads them to the system. Repair cost is calculated, and after the pictures go through an anti-fraud system, the insurance payment is transferred via a smart contract. The whole process can take as little as 15 minutes.

The military-grade fraud detection system analyses driver’s pre and post accident behaviour and creates their trust index on the basis of their past history. This reduces the number of effective frauds to 2%. Losses that the insurer carries are reduced enormously.

Kasko2go app offers dynamic evaluation of driving conditions. Based on the weather conditions, the quality of the road, personal driving style and other factors it suggests the best driving option to avoid collision. The team has analysed the accident hotspots and consistent accident patterns. This knowledge is also used in the app to help drivers choose a safe path and behaviour on the road.

Customers get transparent prices on individual rates based on personal risk assessment.The prices are 30-50% lower than the competitors’ rates. Payments are faster and security is higher. The insurers who are going to use this technology get 70% less losses, increased low-risk customer base and improved fraud detection.

Innovation:

The technology Kasko2go uses has won awards at InsurTech Israel Competition in 2017 and FinTech Awards Luxembourg in 2017. It helps both customers and insurers save a lot of money, while making the service faster and easier.

Token value:

K2G is the platform’s utility token. All the payments, insurance premiums and payments from companies that use the technology in their business, have to be done in K2G.

As the the number of clients grows, the price of K2G is growing too, as the supply is limited to what is sold during the ICO. The user base will grow fast, the estimates in CIS show that the company will seize 30% of insurance market in Russia.

Token value score: Medium

White paper:

The white paper of Kasko2go presents a market analysis, outlines key features of local markets and shows company’s development plan. The product is described in details, flowcharts are given to facilitate understanding. The white paper also explains the technology they use to cut down premiums, gives a short competition analysis and warns about risks involved in this business venture.

White paper score: High

Roadmap:

Market analysis, analysis of customer’s needs and analysis of drivers’ behaviour were held long before the company’s incorporation, starting in 2009. Some of the technologies that resulted from this research were later bought by Google. In the end of 2017 the app was launched and now it has 25,000 users.

Sales start in May 2018. In the first quarter of the year the app should be working with two companies in Ukraine, leasing software to them and running initial tests. The team will launch and promote co-branded apps with them. In the second quarter of 2018 the amount of companies should be up to five, the geography enhanced to Switzerland, Germany and Austria. The company will launch Kasko2go app with the ability to choose an insurer. Joint projects with telecom, internet companies and automotive OEMs will be initiated by the end of 2018.

In 2019 the company is going to scale the business, expanding to USA and North America and evaluating whether it would be beneficial to start their own insurance company.

Roadmap score: High

Business model:

Kasko2go enters enormous insurance market. It doesn’t compete with insurance giants, but gives them tools to cut down their losses. Alpha Insurance’s marketing specialists say, this company will seize 30% of Russian insurance market.

The revenue model is simple. Customers pay premiums, the company pays insurance. The key is in the balance of premium payments and losses and profits. Kasko2go can reduce the losses by preventing frauds, which allows to lower the premiums by 30% at least. This is the best kind of marketing for the customers and insurance companies that can lease Kasko2go software for a fee.

Business model score: High

Team:

The company’s CEO founded Telesens KSCL AG, one of the leading telco billing companies with revenue about 300 mio EUR. The co-founder is an opinion leader in insurance who made appearances on CNN Money.

Strategic planning lead had managed cartographic projects bought by Google.

Senior Risk Manager has more than 10 years of experience doing this job, and has delivered large scale governmental projects. Lead blockchain architect is a DASH cryptocurrency developer. Financial modelling lead has worked as a financial analyst in software development, construction, waste management and investment.

Sales advisor is a co-founder of TemplateMonster. The community management advisor co-founded the biggest community management, analytics and marketing platform for Telegram. The team also has strategic advisor and insurance advisor.

Team score: High

Competitors:

Even though the insurance market is extremely competitive, Kasko2go fits it just right not to have any problems seizing a significant part of it. It serves big insurance companies and compared to its competitors like OCTO, Raxel, Driveaway, Allstate, Cuvva and Metromile, has a much wider array of tools and features.

Competitors score: High

Overall thoughts:

Kasko2go invents a solution that changes the insurance industry. The team that propels it is composed of seasoned professionals and it has few competitors. Financial estimates show that K2G is going to rise in price dramatically.